2000 P P RELIMINARY RELIMINARY R R ESULTS ESULTS P P RESENTATION - - PowerPoint PPT Presentation

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2000 P P RELIMINARY RELIMINARY R R ESULTS ESULTS P P RESENTATION 2000 RESENTATION 12th March 2001 2000 Preliminary Results Presentation PRESENTATION Introduction and Overview Sir David John Results John van der Welle Operations Richard

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2000 2000 P PRELIMINARY

RELIMINARY R

RESULTS

ESULTS P

PRESENTATION

RESENTATION

12th March 2001

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2000 Preliminary Results Presentation

Make a Difference

Introduction and Overview Results Operations Strategy and Outlook

PRESENTATION

Sir David John John van der Welle Richard Liddell Charles Jamieson

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2000 Preliminary Results Presentation

Make a Difference

HIGHLIGHTS

Return to profits Outstanding exploration & appraisal results Growing reserves base Developments on track Strengthened board & management

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2000 Preliminary Results Presentation

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RESULTS

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2000 Preliminary Results Presentation

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RESULTS OVERVIEW

Production 27.3 mboed (1999 : 29.1 mboed) Operating profit £35.2 million (1999 : loss £6.3 million) Net profit £6.1 million (1999 : restated loss £27.7 million) Treatment of Yetagun take or pay – SORP Full provision for deferred taxes – FRS19

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2000 Preliminary Results Presentation

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ACCOUNTING ISSUES

SORP (Accounting for Oil & Gas)

  • Yetagun Take or Pay – “record a liability account until make-up gas

delivered “ (para 130 (b))

  • Revenue deferred £ 11.8 million
  • Net profit deferred £8.1 million

FRS 19 (deferred taxation)

  • Full provision to harmonise with international standards
  • Prior year adjustment £32.8 million
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2000 Preliminary Results Presentation

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PROFIT & LOSS ACCOUNT

Production (mboepd) Realised oil price ($/bbl) Realised gas price ($/mcf) Turnover less: share of JVs turnover Group turnover Operating costs Amortisation Other Gross profit Administration costs Operating profit / (loss) Operating profit in JVs Total operating profit / (loss) Profit on disposal Net interest Exchange gain Profit / (loss) before tax Taxation Profit / (loss) after tax Earnings per share - basic and diluted (pence)

1999 (restated)

29.1 14.93 1.87 89 (5) 84 (31) (38) (14) 1 (10) (9) 3 (6) 3 (14)

  • (17)

(11) (28) (2.5)

£m 2000

27.3 21.62 2.64 116 (16) 100 (33) (33) 2 36 (7) 29 6 35 1 (22) 3 17 (11) 6 0.4

£m

Excludes Yetagun ToP (SORP) Hedging loss £28.7m Unit opex (incl JV’s) £4.1/boe – Kyle EWT and field declines Unit DDA (incl JV’s) £3.4/boe Reduction due to one-off in 1999 Startup of production in Myanmar Higher debt and cessation

  • f capitalisation on

Yetagun

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2000 Preliminary Results Presentation

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CASHFLOW

Net cashflow from operations Net interest Taxation Operating cashflow (after interest and tax) Capital expenditure Disposals (net) Net cashflow Share subscription Net receipt from JV Exchange/other Movement in net debt Yetagun interest accrued Opening net debt Closing net debt 42 (17) (17) 8 (141)

  • (133)
  • (16)

(149)

  • (171)

(320) 32 (22) (12) (2) (101) 47 (56) 134 47 (7) 118

  • (289)

(171)

Higher taxes on higher profits Build-up capital expenditure Increase in line with higher net revenues

Exploration Fields Excl JV £m 12 129 141 JV £m 10 9 19 Total £m 22 138 160

2000 (As reported) £m 2000 (Incl. JVs) £m 1999 (As reported) £m

52 (17) (17) 18 (160)

  • (142)
  • (27)

(169) (8) (268) (445)

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2000 Preliminary Results Presentation

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BALANCE SHEET

2000 (incl. JVs) £m

Cash Debt Net debt Shareholders’ funds Gearing ratio 30 475 445 290 153

2000 (As reported) £m

27 347 320 NA NA % 154 325 171 NA NA

1999 (As restated) £m

Gearing well within debt covenants

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2000 Preliminary Results Presentation

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2001 2002 2004 80,000 40,000 20,000

Production (boepd)

60,000 2000 2003

PRODUCTION AND CAPITAL EXPENDITURE

160 100 80 40 20 60 140 120

Capex £ million

Crossover – falling capex and rising cashflow

Production Capital Expenditure

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2000 Preliminary Results Presentation

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OPERATIONS

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2000 Preliminary Results Presentation

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OPERATIONS HIGHLIGHTS

Production performance World class developments Exploration successes Reserves enhancement

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2000 Preliminary Results Presentation

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2001 2002 2004 80,000 40,000 20,000

Production (boepd)

60,000 2000 2003

PRODUCTION

DELIVERING OPERATIONS PERFORMANCE

Production

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2000 Preliminary Results Presentation

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MYANMAR – YETAGUN

WORLD CLASS DEVELOPMENTS

$650 million major project (Premier 26.7%) – Premier operated Delivered on time, on budget Expected to deliver DCQ within 2001 Paid on time for gas delivered

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2000 Preliminary Results Presentation

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INDONESIA – WEST NATUNA

WORLD CLASS DEVELOPMENTS

Anoa Platform KF Platform Jem aja M ubur Bintan Batam

MALAYSIA INDONESIA

GAS LINE TRUN KLIN E

SINGAPORE

Major platform and pipeline project 22 year contract – 325 mmscfd Early gas project

  • Gross revenue - $8 billion
  • Premier largest stakeholder – 28%
  • 6 months ahead of schedule

Main contract start-up July 2001

  • On schedule
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2000 Preliminary Results Presentation

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PAKISTAN

Zamzama (Premier 9.4%)

  • Reserves over 2 tcf
  • Phase I production on schedule for April 2001

Qadirpur (Premier 4.75%)

  • Facilities upgrade on stream 2003

Bhit (Premier 20%)

  • Reserves 1 tcf
  • $260m development underway
  • Plateau production early 2003

Zamzama early gas facilities

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2000 Preliminary Results Presentation

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UNITED KINGDOM – KYLE AND CHESTNUT

Kyle (Premier 35%)

  • Successful completion of EWT
  • 540,000 barrels produced net to Premier
  • NE structure successfully appraised
  • On schedule for 2001/1H production

Chestnut (Premier 30%)

  • Innovative deal with Brovig concluded
  • 100 day EWT from 2Q 2001
SH UTTL E T ANK ER PET RO J ARL
  • 1
W e ll 2 9 /2 c-12 Z So u th K yle D r ill C en tr e V alv e Pro te ctio n F ram e N
  • r
th Ky le D r ill C en tr e T e e P ro te ctio n F ram e W e ll 2 9 /2c
  • T
Z Co n tr
  • l Um
bi lical T C
  • n
n ect ion 8 ” P ro du ctio n P ipe line an d Co nt ro l Umbilical AP PR OXIMA TE LY 1 2K m TO BAN F F F PS O Rise rs 8 ” Pro du ctio n lin e B un d led E le ct ro /H y drau lic Co nt ro ls Um bilical Ris er B ases
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2000 Preliminary Results Presentation

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EXPLORATION AND APPRAISAL WELLS IN 2000

7 SUCCESSES FROM 12 WELLS

U.K.

Naga Iguana Natuna Sea

Pakistan West Natuna

Zarghun South Kyle Gajah Baru

Pangkah

Sidayu Ujung Pangkah-2

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2000 Preliminary Results Presentation

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Chestnut 5 mmboe Zamzama 27 mmboe Pangkah 36 mmboe Block A 46 mmboe

100 80 60 40 20

114 mmboe

Unbooked Reserves 114 mmboe

OIL AND GAS RESERVES (END 2000)

Note: working interest proved & probable basis

602 mmboe Booked Reserves 488 mmboe

Myanmar (177 mmboe) Indonesia (188 mmboe) Rest of World (17 mmboe) U.K. (45 mmboe) Pakistan (61 mmboe)

Unbooked Reserves

114 mmboe

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2000 Preliminary Results Presentation

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STRATEGY and OUTLOOK

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2000 Preliminary Results Presentation

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mmboe

RESERVES GROWTH

1997 1998 2000 1996 1999 100 200 300 400 500 600 700

Unbooked Booked Note: Working interest proved and probable basis

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2000 Preliminary Results Presentation

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PORTFOLIO DELIVERY 1996 – 2000

A PORTFOLIO THAT HAS DELIVERED

Reserves added

1996/2000

  • Booked
  • Unbooked

Gas commercialised Production base for next 15 years 5 year finding costs 5 year finding and development costs

346 mmboe 114 mmboe Yetagun West Natuna Qadirpur Bhit Zamzama 50,000 – 60,000 boepd $1.25 per boe $2.80 per boe

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2000 Preliminary Results Presentation

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LOOKING FORWARD

Focus

  • Realising the cashflow
  • Commercialising unbooked gas reserves
  • The alliance

Targets

  • Indonesia
  • 2nd sale from West Natuna
  • Gas contract from Pangkah
  • Pakistan
  • Zamzama – second gas contract
  • Qadirpur - increased gas sales
  • UK
  • New field production
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2000 Preliminary Results Presentation

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SUMMARY

Improved financial outlook Sustained higher production Gas commercialisation Delivering value for shareholders